The ministry added that Japan had successfully tested an engine that could theoretically reach speeds up to five times the speed of sound.

Concorde flew at mach 2 - twice the speed of sound. It never recouped the huge amounts invested in it by the time it was taken out of service, after 34 years, in 2003.

However, French airline Air France was one half of the Concorde team, and the country will bring its own technological knowledge of the supersonic jet to the table.

The deal also represents a break with Japan's habit of working with US groups in the industry.

"To research closely in this area with the Europeans does represent something new," said Yoshio Watanabe, an official with the Society of Japanese Aerospace Companies which is heading the new initiative in Japan.

However, while Europe's Airbus is currently the world's biggest commercial airliner maker, US group Boeing said it was placed to beat its rival.

Scott Carson, Boeing head of sales, predicted it would overtake Airbus's four-year lead during the year.

He added that the advance was thanks in part to the creation of a new unit that helps airlines fill gaps in its fleet, which Boeing put in place after losing orders from "a company or two late last year".

The beefed-up sales team has helped Boeing win a number of key orders as it waits for its new 787 Dreamliner to roll off the production line, with companies such as GECAS replacing Airbus jets with Boeing aircraft.

The twin-aisle Dreamliner will not start flying commercially until 2008.

Airbus and Boeing have been involved in a bitter struggle for orders since a slump in the industry began in 2001.

The two are also locked in a trade row over alleged levels of state funding, which has been taken to the World Trade Organization.